CAIRO: The Central Bank of Egypt (CBE) decided on Wednesday morning to allow market forces to determine the value of the Egyptian pound (EGP), while simultaneously raising interest rates by 6 percent, according to Ahram Online

This move, implemented just before the holy month of Ramadan, marks the fourth devaluation of the Egyptian pound since 2022, all to curb inflation.

The step aims to unify the exchange rates and eliminate foreign exchange backlogs following the closure of the spread between the official and the parallel exchange rate markets, the bank said after a special meeting of its Monetary Policy Committee (MPC).

‘The elimination of the parallel foreign exchange market is expected to dampen inflation expectations, rein in underlying inflation. Accordingly, headline inflation is projected to follow a steadily decelerating path over the medium term,’ the MPC’s statement read.

Source: Emirates News Agency